RERA Pulls Up R Homes Over Pre-Launch Violations

Hyderabad:TG RERA directed R Homes to refund Rs14.95 lakh with interest to a homebuyer after finding serious violations in the development of the ‘Jai Vasavis ORR Heights’ project at Patancheru. The order was issued in response to a complaint filed by buyer Chilakalapudi Venkateshwara Rao, who alleged that he was misled into investing in the project through pre-launch offers and assurances made by the developer and its representatives.

According to the complaint, substantial payments were collected from buyers long before the project obtained mandatory RERA registration. RERA found that the builder had advertised, marketed and accepted bookings for the project before securing registration, which is a violation of the Real Estate (Regulation and Development) Act of 2016.

The authority also noted that the company collected money from buyers through agreements described as “investment agreements”, but ruled that these were effectively agreements for the sale of flats, and observed that the builder had induced prospective buyers through pre-launch offers.

The complainant had paid the money towards a flat in the project. Despite repeated promises, construction did not progress as expected. The authority observed that only one per cent of the work had been carried out at the site, and that the project remained far from completion.

The authority has also restrained the company from advertising, selling, booking or collecting any further money for the project until further orders. In addition, TG RERA has directed its officials to begin proceedings for penalties and to issue a show-cause notice asking why the project's registration should not be revoked.

In 2024, Chakka Bhaskar, chairman of R Homes Infra Developments, and his wife Sudharani who was the managing director, were arrested by the Cyberabad economic offences wing (EOW) police. The couple reportedly cheated more than 200 customers of `48 crore in the name of pre-launch offers.